SACRAMENTO – The California Senate has taken a significant step by advancing Governor Gavin Newsom’s special session proposal aimed at preventing spikes in gasoline prices.
The Senate passed Assembly Bill ABx2-1, which was authored by Assemblymembers Gregg Hart and Cecilia Aguiar-Curry, along with Senator Nancy Skinner. This follows the Assembly’s approval of the measure last week. The bill empowers the state to require oil refiners to maintain a minimum fuel inventory, preventing supply shortages that could lead to higher gasoline prices for consumers and increased profits for the oil industry. Additionally, it authorizes the California Energy Commission to ensure that refiners prepare for resupply during maintenance outages.
The measure now returns to the Assembly for a final vote.
Senate President pro Tem Mike McGuire (D-North Coast) stated, “Rising gas prices affect everyone in California and impact nearly every aspect of our lives. The costs at the pump and in stores are intertwined. By implementing measures to prevent price spikes, we can help families manage their budgets. I appreciate the hard work and collaboration of all Senators, our Assembly partners, and Governor Newsom on this important effort.”
Support for the measure has come from various experts, including economists from Stanford University. They describe the proposal as “an economically sound policy that addresses a significant problem in a targeted way.” They also noted that increased supply could enhance refinery capacity, benefiting neighboring states like Nevada and Arizona by lowering prices in those markets.
The bill has garnered backing from mayors, local leaders, consumer organizations, environmental advocates, labor groups, business leaders, and consumer groups. Last month, Governor Newsom and supporters met to discuss the impact of gasoline price spikes on millions of Californians and to highlight how this plan could assist families across the state.
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